Dollar on back foot to begin year
Monday: US Manufacturing, UK Manufacturing, Canada Manufacturing
Wednesday: US Durable Goods
Thursday: US Initial Jobless Claims
January 4, 2021
EUR/USD 1.2297 GBP/USD 1.3627 USD/CAD 1.2705 AUD/USD 0.7715 USD/JPY 103.03 USD/CNH 6.4513 USD/ILS 3.2024 USD/MXN 19.7301 USD/CHF 0.8802 USD/INR 73.02
The dollar fell to the lowest level since February of 2018 - a weak start on the first workday of the new year as evidence of global recovery sent investors into riskier assets. Over the weekend, a recording of President Trump asking Georgia state election officials to find votes was released. Georgia will hold senate runoff elections tomorrow. December PMI and construction spending are due out today.GBPThe pound edged slightly higher but trailed amid fears of economic fallout after leaving the EU. The pound briefly touched 1.37 for the first time since 2018.EURThe euro rose against the dollar to two-year highs on dollar weakness and as signs of economic recovery in factory indexes bolstered risk appetite.CADThe Canadian dollar strengthened alongside the market risk appetite. USD/CAD fell as low as 1.2665 amidst a brief pop higher for WTI crude oil. The currency pair has normalized to the 1.27 level.ASIA/PACIFICThe onshore yuan rose 1.1% breaching 6.5 per USD for the first time since June 2018.
The yen advanced to two week highs on dollar weakness and amid a surge of infections in Japan.
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